Retirement
Government data sharing push a boon for borrowers
The government’s decision to fast track data sharing recommendations outlined in a report from the productivity commission will likely benefit Australians with a history of making their credit repayments on time, according to credit bureau Experian.
Government data sharing push a boon for borrowers
The government’s decision to fast track data sharing recommendations outlined in a report from the productivity commission will likely benefit Australians with a history of making their credit repayments on time, according to credit bureau Experian.
The company expects borrowers with “a strong track record of making timely credit repayments” will be better recognised and rewarded from next year after the government set the end of 2017 as the deadline for more detailed data sharing between lenders.
“The government’s deadline is a significant incentive for change from the ‘negative’ system, where lenders are generally only sharing data about credit applications and defaults, and can’t see, for example, how consumers are meeting their monthly credit repayments,” the company said.
“Although the positive data isn’t yet being generally shared amongst credit providers, it is being shared by a number of credit providers with Australia’s credit bureaus, which is why all Australians need to be aware of what information will be shared and how it may impact their credit scores and future applications for credit.”
Suzanne Steele, Experian’s managing director for Australia and New Zealand, said the changes will provide lenders with better insights into who they are lending to, and could drive down a number of the costs associated with credit.
“The government’s decision to fast-track the introduction of comprehensive credit reporting in support of the Productivity Commission, will ensure Australian borrowers see the benefits of their positive data being shared much sooner,” she said.
“Positive data gives credit providers a much more comprehensive view of their customer’s financial situation, creating an environment to support their responsible lending decision around the level of debt the borrower could manage.”
Ms Steele noted that as much as 80 per cent of all Australian borrowers are likely to be making their repayments on time, but that nevertheless further insights into how Australians make repayments will be of use, and borrowers will need to keep an eye on their credit score.
“From our experience in the 18 other countries where we operate a credit bureau, positive data sharing is a much fairer system,” she said.
“Positive data sharing may also enable Australians with a stronger credit history to access more competitive deals and interest rates and will assist others to avoid entering into unmanageable levels of debt.”
Retirement Planning
What you need to know to get ahead financially
Australians looking to get ahead are being advised to analyse their financial situation, set financial goals and reduce debt whenever possible. ...Read more
Retirement Planning
How to adjust your wealth strategy during COVID
Investors are being urged to be conservative about spending, reduce debt and be careful of assets that are supported by government spending, as they look to adjust their wealth strategies during the f...Read more
Retirement Planning
Should older Australians downsize their property?
Older Australians face the dilemma of not being confident about their retirement outcomes, but are among the wealthiest retirees in the world due to a large proportion of their wealth being tied up i...Read more
Retirement Planning
Self-funded retirees ‘hung out to dry’ by 2020 budget
The Association of Independent Retirees has slammed last night’s federal budget release, accusing the government of overlooking older Australians in its post-COVID-19 recovery plans. ...Read more
Retirement Planning
Work backwards and buffer: How to set (and stick to) financial goals
Working backwards is one of the most effective ways for individuals to set financial goals that actually work, according to a finance director. ...Read more
Retirement Planning
What are self-funded retirees most worried about in 2020?
The national economy, the value of investments and the ability to manage long-term finances are top of mind of self-funded retirees reeling from the effects of a worldwide economic slump. ...Read more
Retirement Planning
Boost your super in the comfort of your own home
There’s a new way for retirees to top up their super through the downsizer contribution without having to move out of their home – and it’s got the approval of the ATO. ...Read more
Retirement Planning
How you’ll retire depends on personal values as much as dollars
Ever wondered why some people accumulate more wealth than others, even when their incomes are on par? It probably stems from their personal values, writes Helen Baker. ...Read more
Retirement Planning
What you need to know to get ahead financially
Australians looking to get ahead are being advised to analyse their financial situation, set financial goals and reduce debt whenever possible. ...Read more
Retirement Planning
How to adjust your wealth strategy during COVID
Investors are being urged to be conservative about spending, reduce debt and be careful of assets that are supported by government spending, as they look to adjust their wealth strategies during the f...Read more
Retirement Planning
Should older Australians downsize their property?
Older Australians face the dilemma of not being confident about their retirement outcomes, but are among the wealthiest retirees in the world due to a large proportion of their wealth being tied up i...Read more
Retirement Planning
Self-funded retirees ‘hung out to dry’ by 2020 budget
The Association of Independent Retirees has slammed last night’s federal budget release, accusing the government of overlooking older Australians in its post-COVID-19 recovery plans. ...Read more
Retirement Planning
Work backwards and buffer: How to set (and stick to) financial goals
Working backwards is one of the most effective ways for individuals to set financial goals that actually work, according to a finance director. ...Read more
Retirement Planning
What are self-funded retirees most worried about in 2020?
The national economy, the value of investments and the ability to manage long-term finances are top of mind of self-funded retirees reeling from the effects of a worldwide economic slump. ...Read more
Retirement Planning
Boost your super in the comfort of your own home
There’s a new way for retirees to top up their super through the downsizer contribution without having to move out of their home – and it’s got the approval of the ATO. ...Read more
Retirement Planning
How you’ll retire depends on personal values as much as dollars
Ever wondered why some people accumulate more wealth than others, even when their incomes are on par? It probably stems from their personal values, writes Helen Baker. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
